Over the ten plus years we have been developing TeamFunz we have found that certain formulas work better than others. This kind of experience will save you years of wandering around in the wilderness. The core of TeamFunz is the "Magic Number", the proper number of owners to purchase property and enjoy it with the most FUN for everyone. Our findings indicate five to seven people work best.
Consider, if you enter into a partnership with one other person or couple you are setting up a "Marriage and Divorce" situation. This means that with 50% ownership you are stalemated on any critical decision where you differ. Additionally, if something changes with the other partner you can be suddenly shifted into 100% ownership of the problems and expenses.
With three partners the possibility of owning a financial burden is still there. You can also get into an odd man out situation. Two parties suddenly decide they don't agree with anything the third one wants and forces their agenda.
Four is the minimum for a team effort but some of the same problems still arise. We recommend starting at five and being open to a few more. What is magical about five, six or seven? First and foremost is Fun is #1! With these numbers you still have 1 ¾ to 2 ½ months to use the property, more than most of us can reasonably expect to use it. This leaves time for rental income to offset expenses and flexibility in scheduling usage by the owners. For example, if a bill comes in for $100, with five owners you will owe only $20. Much easier to take. Similarly, if some one in the group wants to engage in that favorite American pastime of SUEING the incentive is much less when they only own 12-20%. It's a lot easier to sell out or settle when the stakes are low. Things are more workable from a human side too. Many counselors recommend that the best size for group therapy is 5-10. Small enough so every one is heard, large enough to keep things more business like and less personal.
If you go much beyond eight people things start to become impersonal. Fifty-two people owning the same condominium, i.e. timeshare, ends up becoming a faceless corporation. Every issue has to be sent to a committee and no one feels like they are heard. There are "Natural Laws" that seem to make things work in the human equation. Just like those going too slow on the freeway can cause accidents and those going too fast are equally dangerous. Hot tubs and ovens have "just right" temperatures; the difference between undercooked and overcooked, useable nourishment and garbage.